The Benefits of Buying an Established Business

The dream of business ownership is alive and well these days, especially in Colorado. As of 2015, the state is home to nearly 600,000 small businesses which employ almost 1,000,000 people! Every day you hear about a new start up being launched or a company taking its headquarters to Colorado. Business is good! So for today’s discussion, we thought it would be important to address the benefits of buying an established business over starting a business.

In Colorado, 52% of small businesses fail within the first four years of being established (as of 2016). But this percentage dramatically decreases with the purchase of an established business for a number of factors which we will discuss below.

Proven Business Concept. Buying an established business is simply less risky than starting a business of your own. The concept has been proven to work and has a track record of that success. This also comes in handy when it comes time to finance the business, banks are much more willing to lend to a buyer with a proven concept than fund a start-up business.

Established & Recognized Brand. When purchasing an established business, there will already be a brand in place, that is recognizable in the community and has a history and reputation behind it. It is much easier to market an established business to a community than to market a new business.

Staff In Place. Hiring employees is time-consuming and costly and within the realm of a start-up business, every penny counts! An established business comes with staff in place that has already been hired, trained and developed to operate the business. These employees will not only be able to help you transition into your ownership role they will also provide you with a more flexible schedule to focus on business strategies and family.

Customer Base. An established business has had the time to develop customer relationships and a loyal following. Which means the business will benefit from revenue from the time of purchase on. With a start-up company, the owner will have to work much harder to gain traction within the community and attract customers.

Growth & Planning. Instead of working to make your start-up business viable, as the new owner of an established business, you will be able to focus on scaling and strategic planning. This factor alone can alleviate a large piece of the risk and stress of a start-up business.

Deciding to buy a business will put you one step closer to reaching your entrepreneurial goals!

To learn more about how to buy a business or even how to buy a franchise we invite you to visit our website for more information!

This article was written by the Managing Director of Transworld Business Advisors of Colorado. Transworld is the top brokerage firm in Colorado. Their team of brokers have the most and widest range of business listings for sale, inclusive of 100+ listings annually. Transworld Denver’s service area covers the state of Colorado, focusing on the Denver Metro, Boulder and Golden areas. They assist visionary entrepreneurs in buying a business or selling a business in Colorado, specializing in helping family-owned and closely held businesses with their strategic plans for the future.

Business Coaching for Business Improvement

Business coaching can actually bring the much-desired changes to your business. Coach is a word which is derived from “kocsi”, a Hungarian name that means “carriage”. Today, however, the word has a wider use and it basically means transportation of people from one point to the other where they desire to be.

Business coaching, therefore, can be defined as a process that can be applied so as to move a business from its current position to where the owner envisions it to be. What a business coach does is to offer guidance and assistance to the owner in view of business growth, helping in the clarification of the business vision and how exactly it can fit well with the personal goals. This is a very important step and should be a point of focus.

Business owners should be made to understand the importance of reaching their goals for the business and how it can affect them personally. The business owner is responsible for the determination of the passion and speed in which goals are met. When the business owner has a passion for reaching a goal, he will be more determined to make it work by all means.

Usually, a coach will get to know the business owner desires and this helps in the prioritization of the goals and strategies that need to be put in place. It is the work of the coach to meet you with the owner on a regular basis so as to ensure they remain on track to all commitments that they may have made.

Accountability is a critical component of business coaching. It is important to understand that a business coach isn’t a consultant. This means that they don’t work for the business. The main aim is to help you with focus and keep on reminding you the importance of reaching the set goals. They also work to motivate the business owner to actually keep the commitments. They are the sounding board and can even hold a mirror so as to reflect all the blind spots that you may have missed.

Most of the success stories that you may have heard attributed it to amazing business coaches. For business owners who seek to have more time, more money and better relationships and health, it becomes important to have a business coach. The reason why the most business fails is that people are not really taught about ways in which they can actually win at life. Coaching, therefore, bridges the gap and enlightens the business owners in ways that only a coach can achieve.

It is the dream of every business owner to have a winning team around them. Also, anyone in business desires to have great profits in an effortless and exponential way. A winning business allows you to have time and money freedom. If you feel that you need to rethink your commitments and focus on the goals you had initially set out for your business, then getting a great business coach can actually help you and your business to a great extent.

Resilient Businesses Move Their People To The Cloud

Every year, as the Atlantic hurricane season approaches many businesses have a nagging realization that they are at risk due to a catastrophic “Black Swan ” event. Black Swan events are a constant source of risk in states like Florida where many communities are subject to disruption due to coastal storms. This risk is particularly acute for businesses that depend on the storage of on-line data if there is a chance their critical data could become lost or corrupted. But the threat from Black Swan events isn’t limited to Florida, nor is it limited to large scale disruptive events like hurricanes.The black swan theory or theory of black swan events describes a disruptive event that comes as a surprise, has a major effect, and is often inappropriately rationalized after the fact with the benefit of hindsight. The term is based on an ancient saying which presumed black swans did not exist, but the saying was rewritten after black swans were discovered in the wild. Consider the following scenario…

“We tend to think of disasters in terms of the attacks on the World Trade Center, Hurricane Katrina, or other mega events. Sometimes, however, less notable events occur that can have a catastrophic effect on a business. In February 1981, an electrical fire in the basement of the State Office Building in Binghamton, New York, spread throughout the basement of the building setting fire to a transformer containing over a thousand gallons of toxin-laden oil. Originally thought to be PCBs, the toxins were soon determined to contain dioxin and dibenzofuran, two of the most dangerous chemicals ever created. The fire was smoky and quickly filled the 18-story building with smoke. As the transformer burned, the soot entered the buildings ventilation shafts and quickly spread toxic soot throughout the building. The building was so badly contaminated that it took 13 years and over $47 million to clean before the building could be reentered or used. Because of the nature of the fire, the building and its contents, including all paper records, computers, and personal effects of the people who worked there, were not recoverable. This type of event would be irrecoverable for many businesses.” – Operations Due Diligence, Published by McGraw Hill

What affect would a catastrophic hurricane that affected an entire region or a localized disruptive event like a fire have on the operation of your business? Could you survive that kind of interruption or loss? As the dependence on on-line data has grown in virtually every type of business, so has the risk that loss of their data could disrupt the operation of the business and even result in its complete failure. In response to these threats, there has been an evolution in the approaches used to mitigate these risks as the volume of on-line data has continued to grow. Originally, the concept of Disaster Recovery (DR) emerged as a mitigation strategy that focused on the recovery of critical data after a disruptive event by giving the business the ability to restore disrupted IT operations.

Disaster Recovery (DR) involves a set of policies and procedures that enable the restoration of critical business data and allows the IT infrastructure to be restored to a prior state. DR was originally seen as the domain of the IT department who were given responsibility for mitigating the risk. To minimize the risk, system backups were scheduled frequently and aggressive DR plans that included server cold start procedures and data backups were implemented.

The goal was to restore the infrastructure to the last point where the data had been backed up (at the time, typically on tape). The acceptable DR practices at the time allowed the IT system to be rebooted when the facility power was finally restored… Unless it was in a flood zone or the off-site backup storage facility had also been impacted. In either case, the operation of the facility could potentially be disrupted for some period of time and the data restoration was also potentially at risk depending on where backups were stored.

Now let’s roll the calendar ahead… As technology evolved so did the Disaster Recovery strategies, which lead to new concepts that evolved to the requirements for a Business Continuity solution as a means of mitigating risk. Still seen as the domain of IT, as technology moved towards solutions like shadow servers, distributed data locations and high speed bulk data transmission with hyper connectivity. Data no longer had to be “recovered”, it just had to be connected in distributed locations where it could be remotely accessed. Business Continuity mitigated the risk of data loss and allowed a business to recover much more quickly and efficiently from a Black Swan event because its servers never went completely down.

Business Continuity originally encompassed planning and preparation to ensure that an organization’s IT infrastructure remained intact enabling the business to efficiently recover to an operational state within a reasonably short period following a Black Swan event. Technology today has evolved towards cloud solutions that put both the data and the applications into remote “cloud” locations so it would seem the IT responsibility for mitigating the risk of on-line data loss or corruption has been solved. With highly connected, fully distributed solutions, some people feel the need for business continuity may be fading in criticality. Nothing could be further from the truth…

The fact is the risk was never solely in the loss of the data but the loss of the businesses ability to operate. There are businesses that cannot tolerate any disruption to their operations. These include healthcare, insurance, and communications companies, critical logistic suppliers, transportation providers and local governments. It is during Black Swan events that the services and products these businesses provide may be most needed. The requirements of other, less critical businesses, whose operations could be interrupted for days or even weeks, but who might face a significant financial risk, may also make their continued operation a matter of corporate survival.

Today’s technology has completely abstracted business processing and data from the user by moving critical IT infrastructures into the cloud. Cloud technology enables users to work from remote locations, but use of the cloud doesn’t fully mitigate operational risk. It means people have now replaced computers as the critical path to continued operations. The operation of the business is more likely to be interrupted because key personnel aren’t prepared to sustain operations during a Black Swan event. They don’t have a facility that has been proactively planned to support operations during disruptive events that could last for hours, days or weeks. Particularly in areas like Florida, where large natural disasters such as hurricanes can disrupt services to entire communities, resilient businesses need to prepare in advance for sustained operations during a disruptive event. The ability of a business to continue its operations during times of distress are a measure of the businesses resiliency.

Business Resiliency: takes business continuity to another level because it makes it the domain of operations management rather than leaving it solely as the domain of the IT Department. When planning for disaster recovery or business continuity the critical link is now the people who are needed to operate critical systems remotely. Yes, there are occasions where staff can work from home or from remote facilities the business may operate, however, this is not always a satisfactory answer and even when it is, businesses often find themselves scrambling to play catch up, trying to figure out who does what and “how can we get it done under these circumstances” situations. During Black Swan events including regional disruptions like hurricanes or local disruptions such as fires, many of the people the business relies on may not have power, internet or even a phone needed to enable them to work from home. Because you can’t put people in the cloud, Business Resiliency requires planning, training and practice so that your staff knows how and when to mobilize.

Resilient businesses integrate Black Swan response into their continuing operations so that, when they are needed, at a time when the business and the people are under stress, everyone knows how to respond efficiently and effectively and where to go to provide that response. Business resiliency requires a dedicated facility that has been hardened to withstand Black Swan events and has been designed to provide the support services the people and the IT infrastructure will both need. Business resiliency requires proactive planning and the integration of operating procedures into the businesses standard operating plans to include remote operations by trained critical staff who have been mobilized to respond during disruptive events and it requires proactive practice to ensure that, when remote operations are needed, the people are ready.

The Importance of Disaster Preparedness for a Small Business

Any business, whether small or big, faces many challenges and some of the biggest challenges are in the shape of disasters, especially the natural ones. It does not matter which part of the world your business operates in; natural disasters are possible in every part of the planet. Floods, storms, hurricanes, earthquakes, etc. are among the most common types of natural disasters. This is why it is highly recommended that you have the right preparation for a natural disaster. According to Red Cross, major natural disasters such as earthquakes and floods are so damaging for small businesses that 40% of those that get hit by one of these shut down forever.

So, what is the importance of preparing for disasters for small businesses?

A Professional Impression

Disaster preparedness and disaster recovery plans are often associated with large enterprises and organizations. But are small businesses protected from disasters? Your small business needs a disaster plan just as much as any big business out there. Having a disaster plan integrated into your system and documented gives off a very professional impression of your business. When you become a big business, you can get audited for a hundred different things. Furthermore, your employees will also be happy that they are working with a company that thinks long-term.

Prevention of Various Disasters

While there is nothing much that can be done about natural disasters, you can do something about disasters caused by humans and their errors. A human can cause damage to your property on purpose as a result of jealousy, reaction to some unfair treatment or as a bad business tactic. When you have the right equipment and system in place, it is difficult to cause such damage to the business. In most cases, human-made disasters are in the form of a fire that can burn all the important documents for a company and any systems that store valuable customer information.

Safety of Employees

Preparing for a disaster does not always mean you have to maintain business continuity. In fact, another important part of disaster preparedness is the safety of your employees. At times, you can’t instantly tell what might go wrong. A storm or hurricane can cause damage to electric poles and wires. If not protected properly, this damage can result in the deaths of your employees. Furthermore, when you are not prepared to face a flood, you might end up calling your employees to work and getting their vehicles damaged.

Business Continuity

One of the reasons to be prepared for disasters is to maintain business continuity. If you reside in a region where certain types of natural disasters are common, you have to prepare for these first and then for other types of disasters. For example, a business in Japan will have to prepare for an earthquake and the Tsunami. In some parts of America, there are more tornadoes every year than there are storms in the entire country. When you have a plan for such disasters, you can ensure the continuity of your business even when the disaster strikes.

Continuing business operations can be as easy as asking your employees to work from home. To make this possible, you might want to have all your data and important business applications moved to cloud, so when your company servers are down, you can ask your employees to work. Another important aspect of continuing your business despite great disasters is backing up your data. When it comes to backup, you can’t back up the data in one location only. The idea is to back up your business data every day and move the backup to another location. If your budget allows, you can back up the data in even more locations than two.

Quick Response

An important aspect of disaster preparedness is to share this knowledge with your employees. You also have to update them with any changes you make to your disaster preparedness and recovery plan. For example, if a sudden fire breaks out inside your business premises, your employees must know what the first course of action has to be. You should also ask your employees to have all the important business applications, software tools, etc. installed on their devices if your response to a disaster is asking them to work from home. When your employees know exactly what to do in the case of a disaster, they can get a response to a bad situation instantly, so you face virtually no downtime.

Cost-efficiency

Disaster preparedness and recovery are not just about being ready to handle a disastrous situation. In fact, it is also about being able to operate the business and recover business operations after a disaster hits with as minimum resources as possible. A business without a disaster plan can also recover from a disaster. However, the huge difference here is that the unprepared business will have to spend a lot of money and resources to get back on its feet whereas a business with a plan will continue its operations with minimum efforts.

Improved B2B Relations

It is not just your customers but also your business partners that get affected when your business shuts down temporarily due to a disaster. They might be relying on you for their mission-critical processes, and your absence can cause them to either stop their operations or find another partner to make things work instantly. On the other hand, if your business is still running despite getting hit by a disaster, your business partners will take a very positive impression of you. This is going to help you retain your business partners as they can now trust your professionalism and seriousness with business.

Conclusion

To prepare for disasters, the first thing you have to do is change your mind about the whole situation. Many small business owners think that things like disaster plans are better suited for large enterprises or when a business has grown big enough to have multiple branches. What they don’t realize is that it is much easier to recover from a disaster when you have multiple locations than it is when you have only one location. So, start assessing your risks today, create a sound communication plan and document your disaster preparation plan today.

How to Create a Business Blueprint

Businesses, like buildings, require a blueprint or a design plan. Could you just start building and putting up walls? Sure, you can start enthusiastically and creatively, but there will come a point where parts aren’t coming together as they should and your efforts begin to feel unproductive, confused or even wasted.

Entrepreneurs begin businesses in many ways based on their personalities and belief systems. Some need detailed, well researched plans. Others jump in, get clients and are rolling before they’ve even decided what business they choose to be in. Then there is everyone in between.

For some, planning dampens their enthusiasm, for others, it’s an absolute necessity. Regardless, the planning process itself is a great exercise, pushing the business owner to develop clarity and goals in key areas.

Where it gets interesting in my opinion, is after the plan is finished. How is it used? Is it used at all? Does it prove to be a guiding light or a rigid limiter?

For one to adhere to very detailed plans, the business owner, the organization and the plan have to be well aligned. The plan should be reviewed and revised regularly, quarterly or monthly, so that congruency remains intact.

For the non-planner types, a business blueprint provides vision, structure and general form. It’s a useful framework, providing structure, direction and purpose, while leaving plenty of room to shift and create over time.

Here are some key components of a business blueprint that can serve as the foundation for your developing business:

1. Your Vision – There is something you envision when you go into business. Capture that vision on paper. Why are you driven to be in business at all? Who do you serve and how? At its future best, what does it all look like as it plays out?

Specificity in your vision is key. This is the “down the road” snapshot that you hold in your mind as the prize. The plan is designed to help you reach this vision, so the clearer the vision, the more helpful the plan.

2. The Why – Document and regularly remind yourself of why this vision matters to you. Your “big why” is any reason you have that is meaningful enough to drive you through challenges and difficult times. Identify your most significant reasons for being in business and remind yourself of why you are willing to do what it takes to recommit each day.

3. Unique Brilliance – Your unique brilliance is that special life force that you bring to your business that makes it authentically you and gives it power. If you examine what you have always loved (from childhood), attach words or qualities to it, you have something truly special that brands and differentiates your business because of the qualities you bring.

Your brilliance isn’t a technique or skill, it’s a talent that emanates from you and permeates your work. For example, a unique brilliance statement might be: “I spark innovation.” Keep it simple yet powerful. Think of Walt Disney. I believe his childlike imagination was his unique brilliance, and look how that played out.

4. A Stand – What is an overarching principle of your business? Are you taking a stand for something in your business that transcends the products and services? State what you stand for that is expressed through your business. For example, “I am a stand for people communicating effectively to make the world a more harmonious place.”

5. Expertise – What are you an expert at? This is still aimed at the business owner, but is more related to the work he/she is doing. What expertise do you have (and should your team have) that will drive the business forward. An example might be, “I am an expert at making people beautiful.” This expertise will be used in the business and in the branding.

6. Brand Values – Identify the brand promise you are making to the market you serve. This is the promise of an experience they can expect to have when working with you regardless of the product or service. What values are necessary to provide that consistent experience? As an example, consider Four Seasons Hotels and the experience you have there whether you stay in a suite or just have dinner in the bar.

7. Target Niche – Who specifically is your ideal customer? Choose as narrow a niche as you can so your marketing can be very targeted and specific. This is not intended to turn people away, but to give you as clear a picture as you can get of the client or customer who is best served by what you have to offer and your expertise. These are the people you need to speak to in your messaging as they will be most willing to engage.

8. Products/Services – Define and describe exactly what you are offering to your niche audience. What products or service does your business provide and why? What is the intention for each one? What results should customers expect from what you offer? What differentiates your products and services from similar ones on the market?

9. Marketing and Sales – Provide details of how you will market your products and services and what your sales process will look like. Regular attention should be paid to the optimal ways of reaching your audience and turning them into paying customers. Identify mechanisms for tracking what works and what doesn’t. Great communication and consistent branding is key here.

10. Delivery System – How will customers receive the products or services being offered? From beginning to end, there is benefit to designing and implementing good systems for efficient and high quality product/service delivery. Consider detailing this out for every category of service or product.

11. Operations – What are the front and back office activities that make the organization work seamlessly and efficiently? Who are the players? There is a flow of production, communication, information, transaction, and follow up that happens in every business. Design the best operational systems for each area of your business and document the desired flow and the team necessary to make it work.

12. Pricing – Identify pricing structures for your goods and services that cover costs and provide reasonable profit margins. This requires that you do your research into the cost structure of your business in all areas, as well as gaining an understanding of the range of comparable pricing in the marketplace.

13. Financial Goals/Tracking – Every business must have financial goals to strive for and ways of tracking key financial targets. Identify five to ten key revenue drivers and set up tracking and reporting mechanisms to see where you are headed and if your strategies are yielding results.

14. Personnel/Team – Whatever your current size, plan how your organizational chart will look when you reach your goals. In your future vision, how many people are working in the organization and in what capacities? Assign a value to your time as the business owner. If you can hire someone for less than the value of your time, you want to work to that end. Continue that analysis throughout the organization. Prioritize future hires, and plan how delegation can take the business to new levels of growth.

A plan, written in this manner, will automatically combine critical mindset pieces with more practical business strategies. This gives you a solid foundation from which to ramp up. It’s your best shot at building a solid, sustainable business. At that point, you will be rewarded with the opportunity to add those creative details not shown on the blueprint.

Michelle is the CEO and founder of Limit Free Life®, a coaching and personal development company designed to help clients discover and transition into careers or business ventures that satisfy their souls. As a former CPA, business consultant and now a certified business coach, she combines a strong background in finance and transition management with an intuitive coaching style.

Setting Up a Small Business in 2018 – It’s Not All About How Much Money You Have

When you think of starting a business, the first thing that comes to mind is money/capital. Of course, you need money to start a business, even if it is very little considering the fact how easy it is to start a business in the digital age. However, there could be many other factors that affect a business in today’s digital economy-some you show serious concern to and some you don’t really pay attention to much.

Blockchain Is Affecting All Types of Businesses

One of the biggest concerns for today’s entrepreneurs before they start business is probably blockchain or crypto technology. The world is seeing the rise of crypto technology and how it is being integrated into the existing business ideas. A little more than a couple of years ago, you must have heard the term “bitcoin”. From bitcoin, people still believe that blockchain is all about digital currency i.e. money in the digital world. However, this is far from truth. Blockchain is expected to affect all types of businesses and industries in the world in the coming days.

It is a technology that redefines the security aspect of many businesses in 2018, introduced decentralization in modern business technologies and benefits the end consumers in multiple ways. For example, you could launch a gaming platform where no one needs the existing currencies. You could launch your own platform with your own money today. You don’t really have to start everything from the scratch; instead you could base your currency on the existing blockchain platforms like Ethereum. Through ICOs, you could have investors from around the world invest in your idea. So, blockchain is definitely a consideration for all businesses starting in 2018 and the coming years.

Physical Warehouses Are Not Necessary

A few years ago, only a certain types of business could be called truly online businesses. For businesses where products have to be stored for some time, a complete online presence was not the solution. Entrepreneurs who had such business ideas in mind had to have enough money to have their own warehouses. However, this has also changed quite a bit in the past couple of years. With the idea of drop shipping becoming common with time, it is becoming easier for businessmen to start their own businesses without much investment.

In a drop shipping model, all you have to do is collect orders from customers, forward those orders to the manufacturers or suppliers and have the goods shipped. You only act as a liaison in this particular model because it is the supplier that sends the products directly at the customers’ doorsteps. You will still need an online store with all the products listed for customers to see. However, you don’t need any warehouses because you don’t have to own, buy or store any products. The good thing is that this model now allows drop shippers to offer much more competitive rates so penetrating into the market is easier for them.

Big Data Is the Big Difference

Another technology that has been influencing business decisions and the way businesses operate is big data. While the term “big data” seems that you are referring to just large amounts of data but in reality, you are also referring to the methodologies and technologies that are in use to handle big data. You will be completely wrong to think that traditional software and hardware solutions can deal with big data in any way. Let’s take the example of a bank. A bank could have hundreds of branches located all around the country. In these hundreds of branches, the bank will have hundreds of thousands of customers.

The bank has account information of hundreds of thousands of these customers. In addition to that, the bank is constantly investing in stock and foreign markets, storing and utilizing that information. The same bank handles the data of all micro and macro loans it is forwarding to its customers. It is also storing information about customers through its mobile application to know what customers expect from the mobile website. On all of those hundreds of branches, the bank also has CCTV cameras collecting terabytes of footage on a daily basis.

Do you think all this data goes to waste? No, the data bank collected from banks is utilized in making bank branches securer. Data from mobile devices helps bank refine their mobile application. Data collected through financial softwares helps a bank improve its insurance, loan, mortgage, etc. offerings. It may seem on the surface that big data is a headache for big businesses only, but big data is just as important for small businesses as well. What this mean is that businesses starting in 2018 will have to have a big data approach right from day one.

Internet Security Is the Biggest Threat Now

It is unfortunate that rather than making the world a safer place, the new technology has led to greater internet threats. Cyber attacks are becoming more frequent with time, and much more sophisticated too. In the past few years, cyber attacks on some of the biggest companies of the world, including tech companies have proved that security has to be the major concern for every business-small, mid-scale or large. If you think starting a new business or having a small business gives you any advantage over large ones.

As a matter of fact, it’s the small businesses that are at a higher risk when they are under any type of cyber attack. This is because large businesses have the technologies and capital to fight the attack, recover and get back on their feet again. On the other hand, small businesses usually don’t have any of that.

Overview:
Becoming a self-employed businessman is a great reputation in the society but the problems faced by the entrepreneurs from the day one of their business is enormous. It is a great challenge for a person to overcome all obstacles to become a successful businessman. The numerous problem faced by all is finance. Even great entrepreneurs of various industries have struggled a lot of financial crisis for setting up their business and to run their daily business operations. Thus finance plays a major role in the life of business people. Great ideas require the necessary financial support to bloom into a successful business.

Introduction:
There are various sources for business people to raise capital for their business. The most trusted source is from banks. There are various reasons why people choose banks as the best source for raising capital for their business. Banks provide a lower cost of funds in the form of Business Loans. There are various types of business loans at differential interest rates to facilitate business people to solve their financial crises.

Types of Business Loans:
Businesses are of different types and need finance at different stages of their business operations. The need also being different, banks help them in providing different types of business loans helping various small and medium enterprises to raise capital.

New Project Loan – Banks are interested in funding for new businesses and also for new projects of existing business. There are various criteria for getting new project loan and differs from bank to bank. Project loans are approved against the collateral of the person like residential property, commercial property or empty land.

Top-up on Existing Loans – These loans are issued for expansion, replacement, diversification of an existing business. These loans are approved for short term or long term basis to buy goods, machinery or any fixed assets for the company.

Working Capital Loans -These loans are provided for the business to solve sudden financial crises and repaid within short durations. Banks are more interested in providing working capital loans against their inventories, stocks or receivable bills of the company.

Secured Business Loan – Business loans in which companies raise their capital against any security for the bank. It may include plot, residential or commercial places, gold, shares, bills, insurance as collateral to get funds for their business. The interest rate is preferably less.

Unsecured Business Loan – Every businessman cannot afford to pledge a security in getting the business loan, so bankers help them with loans without any security based on bank transactions and income tax returns. These loans are charged with more interest rates when compared to secured business loans.

Requirements of the Banks:
There are various steps and procedures followed by banks to provide funds. The procedure and documents to be submitted to the banks as follows

Identity and address proof of the company – Address proof and identity proof of partnership or proprietor business.

Statutory legal registration of the company – Whether the company is legally registered under government norms and have followed all procedures legally in setting business.

Financial statement of the company – Every bank is interested in seeing the recent 1-year business transaction of the company.

Income tax returns – ITR helps the bankers to check the business performance, efficiency level, assets and liabilities of the company and also tax that company pays from their current earnings. This also plays a major role in deciding the loan amount for the business people.

Financial Security – It includes the fixed and movable assets of the company which helps the banker to consider providing business loans based on the asset value along with the business transactions. This also safeguards banks from the failure of businessmen that fail to repay the loan amount.

Previous Loan track – This is a very important factor considered by banks which will help them evaluate the financial condition of the business and also to check on past repayments on loans.

Litigation – It will help banks assess the character of businessmen before providing a business loan.

Takeaway:
Though business loans are found to be a great source for raising capital, businessmen undergo challenge in getting timely funds from the banks. In order to help them in availing timely loans, even NBFC is also now prepared to help them with funds at various stages of their business. Banks & NBFC have also made the lending process easy, with all verification done in shorter time-span, doorstep assistance in collecting documents etc. Businesses with good cash flows & credit score can avail timely funds with much ease.

5 Ways Drake Cloud Can Enrich Your Business Productivity

The main purpose of gearing up any business in the market is definitely to streamline a plan or desire into real life. Being a business owner, the main responsibility of handling the position is to turn every raw into a big profit. How often owners get success in their start examines the perfection of their initial plans. Any business actually doesn’t achieve success until get hundreds of temporary defeats. And, why most of the startups meet with temporary defeats is the real question that in reality, many few have raised. The one-n-only reason that brings temporary defeats is the not-so profound plan of the business owner.

This is very important for business owners to understand & confess range of solutions that will help their business to grow. The enchanting cloud technology has been already taken the whole business world by storm, offering complete new platform consisting of flexibility, reliability, scalability & most importantly security. Drake cloud, one of the most revolutionary solution which is bringing both profitability & productivity to businesses.

The benefits of allowing cloud techniques for tax preparations in business premises are not hidden from any of us. From robust security protocols to instant backups & data recovery functionalities, Drake cloud services are way more of just software to businesses which can be integrated by paying a reasonable fee to the provider. Since the times of its inception, Drake software hosting has raised many tosses of sustainable business growth. Though, the most effective benefit is of enhancing the productivity of businesses which can be understood by analyzing below mentioned 5 ways:

1. Seamless Connectivity: Be in the business environment or not-so workable surroundings or at home, precisely work on the same set of files or projects with fellow employees without any hassle of network, place, and platform. Cloud-enabled businesses are raising their profits to a large extent than businesses who are still working on-site. Usually flexible for both, SMBs and enterprises, the availability of remotely connect with business members to discuss, share or solve business complexities turns it to be a pure gold.

2. Reach to Big Data: One of the most extraordinary ways to minimize costs of resources & IT experts, Cloud-based networks offers cutting-edge technologies which are bringing accuracy to businesses. The Internet is full of unstructured data which is available to all but not transparent to those having lack of knowledge. The cloud technology also avails essential tools that will help businesses to form patterns of useful data that will maintain their integrity. The cloud itself makes businesses utilize the big data efficiently for their business productivity.

3. Employee Retention & Recruiting: The access to cloud-based seamless connectivity service has made it possible for businesses to hire talents from far countries as well. Previously businesses have to compromise with their acquisition process as the employee best-suited for the requirement might not reside in the nearby location and thus the company has to quest for others unwittingly. Thanks to cloud computing with which no business need to limit themselves due to geographic constraints.

4. Scalability: The vast IT world keeps on changing its landscapes in an infrequently manner which may cause harm to many businesses. But with the integration of cloud computing, businesses are capable of facing such changes efficiently. The strictly fabricated networks, protected platforms & round the clock support of experts make it easy for businesses to mark productivity even in today’s competitive world. Scalability is the major benefit one can have if mitigated data with the cloud.

5. Flexibility: Accessing files over cloud network, sharing ideas with fellow members, working in collaboration is the advantage of being integrated with cloud computing. Any business quest for flexibility which can help them to engage with as more people as they can or willing to. With on-site networks, the same process is quite hard and time-consuming as well. The instant solutions for business complexities offer flexibility to any business instantly.

The massive network of cloud-based services is generally a unique combination of three segments- protection oriented platforms, software, and infrastructure. As per the demand for a particular business, correspondence Tax software can be chosen onto which businesses can ask for cloud-based hosting. Providers are offering a choice between public, private, and hybrid cloud deployment from which businesses can select any, keeping their needs & security concerns in mind.

Business Insurance 101: What You Need to Know

So you started your own business. You’ve seen a hole in the market or come up with a brilliant new idea. You’ve got things underway and maybe even started to make a bit of money. Well, before you take one step further, it’s time to think about insurance for your business. After all, you took a big risk starting your own company and that means you need to mitigate those risks as best you can.

The hardline fact about coverage and businesses is that you need it. Everything you have for your business, from vehicles to basic liability, requires insurance. Without it, you could put everything you’ve built in jeopardy, open yourself up to crippling financial issues, or even be in violation of the law. But not to worry, here are some basics about coverage of your business that can help you get the protection you need to succeed.

Types of Business Insurance

The first thing you need to understand about coverage and your business is the different types that exist. Depending on your business, you may need specific kinds of insurance. In general, business coverage can be broken down into three broad categories: insurance for owners or partners and key employees, coverage of business earnings and property, and liability insurance. Here is a breakdown of each different kind.

Insurance for Business Owners, Partners and Key Employees

If you own a business, you need specific types of coverage depending on how your business is set up. These can include, but are not limited to:

• Life insurance – This coverage protects your family if something happens to you. If you are the sole proprietor of your business, this insurance is key because business owners are personally liable for all the debts of the business.

• Disability insurance – In the event that you are injured or fall ill, disability insurance will provide you with an income for a specified amount of time.

• Partnership insurance or buy-sell coverage – If you have a partner in your business, this insurance will help you purchase your partner’s shares and continue running the business in the event of their death.

• Critical illness insurance – If you become critically ill, this coverage will give you a lump sum of money to help you through the situation.

• Key person insurance – This coverage protects you in the event of the death or loss of those employees who are most important to your business.

Insurance for Business and Property Earnings

On top of coverage that protects individuals, your business may also require the following types of insurance to protect its assets and earnings. Bear in mind that businesses run out of your home may require coverage beyond your home insurance. It is always a good idea to contact your coverage company to discuss running a business out of your home.

• Property insurance – This coverage covers any buildings or property owned by your business if it suffers damage or destruction from fire, earthquakes, avalanches and other such disasters.

• Contents insurance – If you have a property or building that stores things for your business, such as a warehouse or storefront, this policy covers the loss of those contents. Note that even if you are leasing space, you may still require contents insurance as your lease will likely make you responsible for what you put inside the leased space. Home business owners will need to contact their insurance companies to discuss what needs to be included in their home policy.

• Business interruption insurance – When disaster strikes, this policy will cover you for the time that your business cannot run at its proper efficiency.

• Vehicle insurance – If your company owns vehicles, you are legally required to have coverage. If you use your personal vehicle for your business, make sure that you contact your insurance company.

Liability Insurance

Liability covers you in the event of a mistake or accident for which you can be held responsible. There are three kinds to consider when you own a business: personal liability, product liability, and professional. These cover you from personal responsibility, something going wrong with your products, and from lawsuits filed by your clients, respectively.

Starting your own business is a big risk, but that doesn’t mean you should take unnecessary chances. If you own a business, you need the right coverage. Be sure to shop around and find the insurance package that’s right for your business. If you have any additional questions, we can help you make sense of your policies to ensure you have the right kinds of coverage from the right kinds of insurance companies.

Four Reasons Why Small Businesses Fail to Grow

Running a small business requires superior problem- solving and an ability to look at the bigger picture. Aside from ensuring that your business turns a profit on a regular basis, you also need to be concerned with your own financial health over the long-term. That includes having a strategy in place for building wealth, so you can enjoy a comfortable retirement once the time comes to hand over the reins of your business to someone else. As an entrepreneur, there are certain hurdles you should be prepared for that can hinder your ability to create wealth. (For a detailed rundown, see? Investigator’s tutorial Starting a Small Business.) Here are four important challenges small business owners face.

1. Too Much Business Debt

Getting a small business off the ground typically requires a certain amount of cash. Taking out a term loan from a bank or a Small Business Administration (SBA) loan may be the answer, if you don’t have sizable savings you can tap into. With a 7 SBA loan, for example, it’s possible to borrow up to $5 million to establish a new business.

Even if you don’t need a loan to get started, that doesn’t mean your business will – or should remain debt-free. For instance, you may decide to open a business credit card to earn rewards on day-to-day expenses or take a merchant cash advance to help cover your cash flow during slower periods. Or you may want to borrow to expand, especially if the business is doing well. While credit cards, advances and loans can be invaluable to keeping the business running, their convenience comes at a cost.

If a substantial part of your business’ revenue is going toward repaying its debts, that leaves less income to devote to growth. It also leaves you, as the business owner, less money to funnel into a solo 401(k), SEP IRA or similar qualified retirement plan to ensure your own future. While the interest on a small business loan, the payments themselves are not. Paying down your business debts allows you to redirect funds toward your retirement or a taxable brokerage account instead.

2. An Inefficient Tax Strategy

As a small business owner, filing and paying taxes may be one of the most unpleasant tasks on your to-do list, but it’s a necessity. If you’re not taking advantage of every available tax break, your wealth without even realizing it. There are a number of tax credits deductions that you can claim on your business or personal tax return? An expense must be deemed both ordinary and necessary. This means the expense must be something that’s commonly associated with the type of business you own and directly connected to its operation.

When you don’t take the time to maximize every possible tax advantage, the result is an overly large tax payment. Hiring an accountant to manage your filing may increase your business expenses slightly, but it can also help to minimize your tax liability. In terms of building wealth, the long-term benefit can easily outweigh the cost.

3. Lack of Diversification

Being a business owner requires a certain amount of juggling, and you simply may not have time to pay as much attention to your investments as you’d like. The size of your assets affects your overall financial standing, including how banks see you, especially if you’re a sole proprietor. Investing in mutual funds or exchange-traded funds, eliminates the hassle of trying to put together a well-rounded portfolio, but it can be problematic if the funds you’re purchasing hold the same underlying securities.

Business owners can also run into issues if they’re not rebalancing periodically. This is vital to ensure that you’re maintaining the right asset allocation, based on your investment goals and risk tolerance. If you don’t rebalance regularly, you could end up with a portfolio that’s either too aggressive or too conservative. At one end of the scale, you run the risk of losing money by gambling too heavily on stocks. On the opposite side of the spectrum, you risk limiting your earnings potential if you’re playing it safe with an abundance of bonds. Either way you’re putting your future returns in jeopardy by not paying attention to the level of diversification in your portfolio.

4. External Risks

Aside from managing market risk, you also need to be cautious about insulating yourself and your business from threats that may arise in other areas. For instance, what would happen to the business if you were to become ill and could no longer oversee its operation? How would your business and personal assets be protected if your business became the target of a lawsuit? What would you do if your business was damaged by a hurricane or other natural disaster?

These are the kinds of questions small business owners must consider, because although such scenarios may seem unlikely, they can have a substantial impact on how you grow wealth. Choosing the appropriate business structure is an important step in minimizing liability, but you should also be proactive in reviewing your business and personal insurance coverage to ensure that you’re protected against every possibility.